Syracuse (WSYR-TV) -- Congressional leaders say negotiations to avoid the “fiscal cliff” this January are still stalled. Even if a deal is passed soon, time is needed to draft a bill and get it through the House and Senate, and then on to the President.
Many are left wondering how the “fiscal cliff” will affect their paycheck.
Some of the ideas being tossed around include:
- It will eliminate the 10 percent tax bracket -- and replace it with a 15-percent flat rate. For somebody making $50,000 to $70,000, that's more than a $1,000 increase.
- The child tax credit will be cut in half, from $1,000 to $500 dollars
- You'll pay 2 percent more on your social security tax - which adds up to $1,400 a year for a person or couple with $70,000 in income.
- Unemployment insurance from federal extension programs will stop suddenly for those who have exhausted the 26 weeks of state benefits.
Government agencies also stand to lose substantial funding. For example, the New York State School Boards Association estimates school districts could lose money for students living in poverty and educational programs for students with disabilities.
For the Syracuse City School District, it would be a $1.6-million cut for the 2013-14 school year.
Most people NewsChannel 9 talked to know more about the ongoing fight in Congress, rather than the possible changes.
“I really don't know what's going to happen to my paycheck, but I think that if they don't make a deal they'll continue to blame the other side. You know how it goes,” said one person we spoke to.
Others said they’ve never even heard of the “fiscal cliff” or said they don’t think it’s significant.
But for those who have strongly considered the impact on their paycheck, it’s worrisome.
Nancy Brame said, “The social security, the two percent there, I think that’s a big hit to my paycheck.”
Karry Tarolli said, “I anticipate my taxes will go up…then I’ll see less money in my January paycheck.”
“I will probably suffer and unfortunately, many people will. That’s the terrible thing,” said Bobby Budd.